Filing Social Security Taxes

Filing for social security online is quick and easy.  You can file for any type of social security benefit online.  There are four types of social security benefits, retirement, survivors, disability, and SSI.  To receive retirement, survivors, and disability benefits, you or the person whose social security number you are filing under must have earned the appropriate work credits for each program.  Work credits are earned by the payment of social security taxes.

Social Security Taxes

The Social Security tax rate for 2009 is 15.3 percent.  Social security taxes are paid one of two ways. 

• If you work for someone else, your employer deducts social security taxes from your wages.  The employer is also required to pay a portion of your social security tax.  This tax is paid to the IRS and social security is notified of how much you have earned to qualify for a work credit.  You must earn $1090 to earn a work credit in 2009. You are allowed a maximum of four work credits in any year.
• If you are self-employed, you must pay all of the 15.3% of social security taxes.  You are allowed an income tax deduction for approximately half that amount on your taxes each year.  Self-employed people get a work credit every $1090 they earn in 2009.

It is possible to excess social security taxes.  This usually occurs if a person has more than one job and is having too much social security taxes withheld from their wages.  This can be rectified by changing the amount of withholding using a W-4 form.

When and Where to File for Social Security

When to file for social security benefits depends on the type of social security benefit for which you are applying. 

• If you are filing for social security disability benefits, you should apply for them as soon as you become disabled because three to five months to get a decision once you have applied. 
• You can apply for social security retirement benefits as early as age 62 but your benefit amount will be reduced.  When applying for social security retirement benefits the longer, you wait to apply for them the higher your monthly benefit will be.
• You apply for social security survivors benefits at the death of the person under whose earnings record you are applying. 
• SSI (Supplemental Security Income) is the only benefit program under social security that you can apply for without paying social security taxes.

You can apply for social security benefits online, over the phone, or at your local social security office.

Earnings statements

Every year before your birthday, Social Security will send you an annual earnings statement in the mail.  This is not a piece of junk mail.  The earnings statement shows how many work credits social security has on record for you.  It indicates if you have enough work credits for retirement.  It tells whether you have enough work credits to be eligible for disability if you should become disabled.  It also indicates the amount of survivor’s benefits your family could receive.  Read the earnings statement carefully and report any errors or omissions to Social Security as soon as possible.

Legal Help

You must pay social security taxes to receive social security retirement benefits, social security disability benefits, and social security survivor’s benefits.  SSI is the only form of social security benefit that does not require the payment of social security taxes.  If you work for someone, you and your employer pay the social security tax.  Self-employed persons must pay all of their social security tax but get an income tax deduction for approximately half of that payment.  It is very important to keep track of your work credits and review your earnings statement that Social Security sends every year.

Social Security laws and regulations can be complicated.  You have the right to appeal any decision made by Social security.  Legal representation is advisable when dealing with the technical nature of disability claims or issues involving eligibility and the payment of Social Security taxes.